Choose the correct answer

An investor invested $100 in stock A and $100 in stock B. The price of stock A change from $30 to $50 Stock B changes from $85 to $100. At the end of the year his wealth

a.

Increase by $42

b.

Increase by 124

c.

Increase by $142

d.

Increase by $24

_________________________________________________________________________

If the Rm (return on the market)=12%, Rf=3%. The standard deviation of the min risk portfolio is the market portfolio is 9%. The standard deviation of the optimal portfolio is 18%. Then the sharp ratio ( the slope)

a.

1

b.

2

c.

0.5

d.

9

The price of Alitisalat had been going up for the last few days for no specific reason, however, the Arab Bank announced a takeover of Alitisilat the price didn't move after the announcement. The conclusion is that

a.

The market is a weak but not semi-strong

b.

The market is not a semi-strong and not a strong form

c.

The market is a semi-strong but not a strong

d.

A market is a weak form and semi-strong

If the return on a stock is 6%, the ret on the market is 10%, Rf=4, then B=

a.

6

b.

0.5

c.

4

d.

0.33

Stock A: return 6%; =12%;StockB: return8%; =5%;StockC: return 11%;=6%;StockD: return 7%; =3%;StockE:return 5%; =5%;StockF:return 10%;=11%.The following stocks on the effecient frontier

a.

Stock B,C only

b.

Stock B,C,D only

c.

Stock A,B,F only

d.

Stock D,F, E only

The CAL line is a mix of

a.

Risky and non-risky asset

b.

Market Portfolio and Optimal Portfolio

c.

Min risk and Optimal Portfolio

d.

Risk-free and Min risk portfolio

__________________________________________________________________________________-- An investor invests 10000 in stock A, $5000 in stock B. Stock A' price change from $30 to $50; stock B changes from $85 to $100.Which is the right sentence

a.

2134 available in his account

b.

3124 available in his account

c.

The total return is 0.5

d.

2134 available in her account